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SoFi Technologies SOFI reported impressive first-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate.
Quarterly earnings of six cents per share beat the consensus mark by 100% and increased 200% year over year. Revenues of $770.7 million topped the consensus mark by 3.8% and rose 19.5% year over year.
SoFi Technologies, Inc. Price, Consensus and EPS Surprise
SoFi Technologies, Inc. price-consensus-eps-surprise-chart | SoFi Technologies, Inc. Quote
The better-than-expected results failed to impress the market as the stock depreciated 5.7% since the earnings release on April 23, 2025
Q1 Revenue Details of SOFI
The Financial Services segment’s net revenues of $303.1 million increased more than 100% year over year in the March-end quarter of 2025.
The Technology Platform segment and Lending segment’s revenues totaled $103.4 million and $413.4 million, respectively, marking an increase of 10% and 25% year over year.
In the first quarter of 2025, SoFi's Loan Platform Business contributed $96.1 million to the company's consolidated adjusted net revenues. Of this amount, $92.8 million was generated by originating $1.6 billion in personal loans on behalf of third parties and referring clients to third parties. An additional $3.3 million in servicing cash flow was generated and recorded in SoFi’s Lending segment.
SOFI’s Margins Contract
The adjusted EBITDA came in at $210.3 million in the first quarter of 2025, which increased 46% from the prior-year period's $144.4 million. The adjusted EBITDA margin of 27% improved by 200 basis points year over year.
SOFI’s Key Balance Sheet and Cash Flow Figures
SoFi ended the quarter with a cash and cash equivalent balance of $2.1 billion compared with $2.5 billion at the end of the prior quarter. Operating cash in the quarter was $59 million, and capital expenditures were $12.4 million. RHI paid out $61 million in dividends.
SOFI’s 2025 Guidance
For the full-year 2025, SOFI expects to deliver revenues between $3.24 and 3.31 billion, which is lower than the Zacks Consensus Estimate of $3.36 billion.
Management expects adjusted EBITDA to range between $875 and 895 million, above the prior guidance of $845-865 million.
SoFi now expects 2025 EPS to range between 27 and 28 cents per share, above the prior guidance of 25-27 cents per share as well as the Zacks Consensus Estimate of 26 cents.
In the second quarter of 2025, management expects to generate $785-805 million of adjusted net revenues (the midpoint of which is $795 million and is above the Zacks Consensus Estimate of $791.6 million). Further, management forecasts $200-210 million of adjusted EBITDA and EPS in the range of 5-6 cents per share, and the higher end of the range is in line with the Zacks Consensus Estimate of 6 cents per share.